Tesla ramps up Shanghai Gigafactory output as China sales rise 2.8%

Tesla Inc. has begun increasing production at its Shanghai Gigafactory in Q4.  Tao Lin, China’s Tesla Vice President, confirmed on a Weibo post. The automaker also faces a slowing demand for its Cybertruck units, with uneven sales across major markets.

The Shanghai Gigafactory represents Tesla’s most prominent global manufacturing hub, which is expected to help stabilize production and meet the rise in international and domestic demand for EV automobiles. The plant is the central facility for vehicles sold in China, Europe, and Asia.

Tesla’s China-made EV sales rise 2.8% in September

According to data from the China Passenger Car Association (CPCA), Tesla experienced a 2.8% increase in China-made electric vehicle sales in September. The automaker sold 90,812 EV units, representing a 2.8% year-over-year increase, effectively reversing a two-month decline. The rise has sparked the production ramp-up in the Shanghai plant in Q4. 

The announcement also follows the automaker’s unveiling of a new model, which is expected to roll out in China as a six-seater EV car for the Chinese market. Cryptopolitan reported in July that the more extended version of the Model Y SUV will be named Model Y L, which is about 150 cm longer than the standard version. The vehicle, powered fully by batteries, is expected to revamp Tesla’s performance and appeal to Chinese consumers interested in multi-seat electric SUV solutions and innovative cabin technologies. 

The Shanghai Gigafactory accounts for more than half of Tesla’s global output. Its production range increase is expected to stabilize production amid the rising competition from local EV variants from BYD and Xiaomi. 

Cox Automotive data show that Cybertruck sales dropped by 62.6% year-over-year in the last quarter, with only around 5,400 units sold. Tesla’s total Cybertruck sales in 2025 are expected to reach roughly 16,000 units, below its initial projections of up to 250,000 units per year. The Cybertruck model’s earlier versions launched at prices around $100,000, which was very high compared to the $39,990 price range that Elon had announced in 2019. 

According to a Business Insider report, the EV sector continues to struggle to find traction in the crowded market, particularly with the recently expired tax credits. The lowest-priced version of Cybertruck currently costs nearly $80,000 after the automaker discontinued the more affordable $70,000 rear-wheel drive variant. 

Tesla’s Cybertruck sales continue to stall in the U.S.

Tesla has since moved to reposition the Cybertruck’s image, shifting away from its ‘sci-fi’ marketing strategy towards branding it as a practical working vehicle. Cybertruck’s direct competitor, the Ford F-150 Lightning, continues to outperform Musk’s automobile firm in sales. The F-150 sold about 10,000 units in the third quarter. 

BYD, Tesla’s Chinese competitor, reported a 14% increase in net profit for the first half of 2025, reaching 15.5 billion yuan ($2.2 billion). Cryptopolitan reported that the rise was fueled by global EV demand and expanded exports, especially to European markets. The firm sold 2.15 million units, representing a 33% year-over-year increase, but still below its yearly target of 5.5 million units for 2025. BYD focused on price cuts, which drove its sales up due to a growing consumer appetite for its cheap variant. 

Chinese EV maker sales registrations increased by over 225% in July, compared to a 40% drop for Tesla during the same period in Europe. Elon Musk’s automotive company faced challenges, including political backlash across the region, with no new models released. 

The U.S. EV maker’s stock price has increased by 2.38% today, trading at $423.33 at the time of publication. It has also maintained a positive 4.74% YTD, with a year-to-date range of $212.11 to $488.54. The stock’s current market capitalization stands at $ 1.33 trillion, with an average daily volume of $95.44 million. 

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